Life Insurance... retiring military?

Alot of people like myself tend to get sleep tested just before they retire just to find out we are Sleep Apne-acks (is that a word? lol). The bad thing is I didnt think of prior diagnosis was to look into outside life insurance. I just recently got diagnosed a few months ago and looked into term life insurance through USAA. I am age 39, male and SA is my only fault. I looked into a 30 year policy for $500K, it was $205 a month. For Sh%^ts and giggles I asked him what it would be without SA, he quoted $105 a month.

So, I told him I should have gotten the insurance before going to the doc, he said yes...LOL

this is gonna suck!

Yep, higher insurance rates if you can get insurance.
Remember all those nasty complications from untreated sleep apnea? They are health risks that affect your medical health (if looking for health insurance) and life expectancy (if looking for life insurance).

Anything that affects insurability will affect the premiums. The insurance underwriters won't care if you are compliant, treated or even wake up with an over night miracle and no more OSA. We are a risky population to insure so we have to pay more and/or have waivers on health insurance and life insurance.

Once sleep apnea is in your medical history (or even the suggestion of it) you will have that blip on your medical records to deal with from now on.

Yiikes i'd never even thought about that--my husband's had it for a year now but nothing's changed on our insurance--let's hope it never does! Right now we've got great insurance! (life )

karessamom wrote:Yiikes i'd never even thought about that--my husband's had it for a year now but nothing's changed on our insurance--let's hope it never does! Right now we've got great insurance! (life )

Once insurance policy has been issued prior to a diagnosis of sleep apnea, it is good for the duration.

Just don't ever let that policy lapse....

Eric, I don't want to launch an insurance debate here, but I'd suggest that if you're going to buy commercial life insurance, you at least consider just plain term insurance instead of what sounds like the whole life policy that you're planning on purchasing. There are plenty of good, long-term investments that will pay you a decent return, but whole life insurance is not one of them.

Insurance agents hate term policies because they're paid a very small commission on them. A term insurance policy will cost you a fraction of what whole life costs and you can use the difference to beef up your IRA and 401K accounts after you retire from the military. Converting your SGLI to VGLI is the obvious choice, but you'd have to check around to see what a straight commercial term policy would cost.

Also, I'd suggest that you take a good, close look at the Survivor Benefit Plan for your military retirement pay. Your personnel folks can give you all the details and you can decide if it's worth it to you.

Disclaimer: I am not in the insurance industry, nor do I work for any investment firm. I'm just an old, retired Air Force guy who likes to save a few bucks whenever he can.

OCO

ADDITIONAL COMMENT: Sorry, I just noticed that you said what you're planning on buying IS straight life, though I don't understand why it's a 30-year policy. Anyway, do take a look at SVP as well. You may decide you don't want it, but that's of course up to you. What I said about the difference between straight life and whole life still stands.

OCO

karessamom wrote:Once insurance policy has been issued prior to a diagnosis of sleep apnea, it is good for the duration.

Just don't ever let that policy lapse....

Very true...

OwlCreekObserver wrote:Eric, I don't want to launch an insurance debate here, but I'd suggest that if you're going to buy commercial life insurance, you at least consider just plain term insurance instead of what sounds like the whole life policy that you're planning on purchasing. There are plenty of good, long-term investments that will pay you a decent return, but whole life insurance is not one of them.

Insurance agents hate term policies because they're paid a very small commission on them. A term insurance policy will cost you a fraction of what whole life costs and you can use the difference to beef up your IRA and 401K accounts after you retire from the military. Converting your SGLI to VGLI is the obvious choice, but you'd have to check around to see what a straight commercial term policy would cost.

Also, I'd suggest that you take a good, close look at the Survivor Benefit Plan for your military retirement pay. Your personnel folks can give you all the details and you can decide if it's worth it to you.

Disclaimer: I am not in the insurance industry, nor do I work for any investment firm. I'm just an old, retired Air Force guy who likes to save a few bucks whenever he can.

OCO

ADDITIONAL COMMENT: Sorry, I just noticed that you said what you're planning on buying IS straight life, though I don't understand why it's a 30-year policy. Anyway, do take a look at SVP as well. You may decide you don't want it, but that's of course up to you. What I said about the difference between straight life and whole life still stands.

OCO

Actually, that price quoted was for a 30 year term insurance plan through USAA (will cover me until 69 yrs old). Looking at other insurance companies, looks like the industry standard is a 20-year plan. I am glad they have a 30 year because I think a 20 year would not be enough and just end up with a bunch of potentially wasted money and extreme rates after that. I am looking into a lot of different options... the VGLI is cheaper for about the first 5-10 years, but then gets extremely outrageous. There is some other companies like prudential which underwrites the SGLI that you con convert to, but looks like it gets very expensive, even without SA. There are some other companies that will convert the SGLI, im expecting more of the same, but just need to continue to do more homework.

We are looking at the SBP as well. I just want to make sure that if anything does happen to either one of us (wifey), we are set without any future worries.

When you get your VA disability determination, the VA will offer you insurance at reasonable rates. Make sure you file for your diability before you actually retire. You can do it afterwards, but it is much harder.

Ditto to what MikeVader said.
Specifically - if you submit your VA disability paperwork GREATER THAN 60 DAYS prior to your retirement date then you will get your disability rating in weeks or a few months rather than years.

Also, if you have the option of SBP (Survior Benefits Plan) then you might want to take it. This is the plan that will allow your spouse and/or dependents to continue to get 55% of your retirement pay each month even after your death. For the price it is hard to beat. For many it may be the only affordable means of taking care of the family after death.
Sadly, most military people don't seek insurance until they are nearing retirement. By that time they have a few disabilities, smoke, are over 40, or have other conditions that make getting insurance difficult.
I was extremely fortunate to have a mentor early in my military career that assisted me in getting both Whole life and Term life insurance. Now, 20 years later that whole life insurance pays me a nice dividend and it is still in effect despite recently found heart problems and OSA.

thanks for the follow ups guys. After doing a bit of research, I did find some insurance for under $100 a month with OSA, $500K coverage and 30 year term life. Thats chokable..LOL

I have not got it yet, have alittle time... but will be getting it through http://www.selectquote.com

thanks for postings

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